I have recieved a contract from a contractor for construction work on my investment property. What provisions should I look for?

A construction contract for

A construction contract for home renovations should include the following provisions: the scope of the work, the cost, limitations on costs, the contractors duty to obtain permits, a change-order provision, schedule of payments, start and completion date, a warranty, the handling of a mechanic’s lien, a notice of the right to cancel, and breach of contract and dispute resolution terms.

While all of the provisions are an essential part of the contract, the terms regarding change-orders and dispute resolution provide important protection. A change-order is an essential provision because it requires that both parties sign a change-order when modifications are made to the original scope of the project. This will protect a property owner from expensive changes that were not approved. It is also essential to determine how disputes that arise will be settled.  Even the best contract cannot protect a property owner from every unforeseen issue. A dispute resolution clause will provide for resolutions to be settled in arbitration. This will protect you from costly litigation. It is best, however, to consult with an experienced real estate attorney before signing a contract. An attorney can help you determine if all of your rights and needs are adequately protected.